Coinbase (COIN) stock closed trading at $256 on Tuesday, May 13, after posting a 23% intraday gain. The rally to a 12-week high comes ahead of COIN stock listing on the S&P 500 on May 19, which will make the exchange the first US crypto company to debut on the benchmark index.
COIN Stock Soars on S&P 500 Listing
The recent gains in COIN stock price have led to Coinbase adding more than $15 billion to its market cap within three days, with the upward momentum expected to continue as it trades alongside giants like Apple, Microsoft, and Nvidia.
The inclusion of Coinbase in the index also marks a pivotal point for the exchange and the crypto industry, considering the strict requirements that companies have to meet to join the S&P 500. This includes having sufficient liquidity for six consecutive months and positive earnings in the last four quarters.
Therefore, it is likely that COIN stock continues to extend gains in the coming weeks as investor confidence in the company strengthens.
Crypto Community Hails “Major Milestone”
Top voices in the crypto industry have reacted to the news around Coinbase stock joining the benchmark index. Michael Saylor, the executive chairman of US-listed Bitcoin-centric MicroStrategy, opined that having COIN on the S&P 500 was a “major milestone for Coinbase and for Bitcoin.” Last year, MSTR joined the MSCI World Index and Russell 1000.
At the same time, the President of ETF Store, Nate Geraci, notes that Wall Street fund managers who have been shunning spot Bitcoin and Ethereum ETF products will be forced to allocate capital to COIN stock. He said,
“Think about how many Vanguard investors will now own Coinbase. But they still can’t buy spot BTC or ETH ETFs on Vanguard’s brokerage platform. Vanguard is fighting a losing battle on this one.”
Bitwise co-founder Matt Hougan also notes that the addition of Coinbase to the S&P 500 proves his thesis that the company has the highest chance of hitting a $1 trillion valuation in the future.
Bitwise Forecasts $15B Inflows to Coinbase
The head of research at Bitwise, Ryan Rasmussen, estimates that Coinbase stock will attract $15 billion in inflows from investors as it is the first crypto company on the S&P 500. He notes that these inflows will come from the $11 trillion in assets indexed on the S&P 500 from institutional funds, exchange-traded products, and derivatives.
By being the first US company on the benchmark index, Coinbase also has have a first mover advantage, which will mirror the launch of spot Bitcoin ETFs. Therefore, it is likely for the COIN stock price to extend the rally and possibly outperform other US-listed companies this month.
COIN Stock Price Analysis
COIN stock price eyes further gains to the upside after overcoming strong resistance at the neckline of a head and shoulders pattern. If bulls can keep up the momentum and the buying pressure depicted by the rising RSI is sustained, the price may breach the $300 price level soon.
Considering the bullish news around the addition of Coinbase stock on the S&P 500, further upside for this asset is likely. Moreover, an influx of inflows from institutions looking for indirect exposure to crypto may see the stock attract $15 billion in inflows per Bitwise estimates and record a massive surge in market cap.
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